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- Release Date: 11/12/12 12:03
- Summary: GENERAL: DOW: Settlement of Singapore Tunnel Dispute
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DOW
11/12/2012 10:03
GENERAL
REL: 1003 HRS Downer EDI Limited
GENERAL: DOW: Settlement of Singapore Tunnel Dispute
Media/ASX and NZX Release
11 December 2012
SETTLEMENT OF SINGAPORE TUNNEL DISPUTE
Downer EDI Limited (Downer) today announced that it had negotiated the
settlement of an arbitration claim commenced by SP PowerAssets Limited (SPPA)
in 2009.
The claim by SPPA related to a contract awarded to Downer in 2003 for the
construction of an electrical services tunnel in Singapore. The amount
claimed by SPPA was SGD85 million plus interest and legal costs.
Under the settlement, Downer will pay SPPA SGD50 million (A$40 million) and
will discontinue its action against SPPA in the Singapore High Court. The
parties will provide mutual releases.
The Chief Executive Officer of Downer, Grant Fenn, said the Singapore Tunnel
dispute was a long running material legacy claim that had taken up a large
amount of management time over the past three years.
A provision of A$28 million is currently held against the claim and an
additional expense of around A$12 million will be booked in the first half of
the 2013 financial year.
Mr Fenn said that whilst the settlement would reduce the statutory Earnings
Before Interest and Tax (EBIT) for the 2013 financial year, the underlying
EBIT remained around A$370 million.
For further information please contact:
Michael Sharp, Group Head of Corporate Affairs and Investor Relations +61
439 470 145
Luke Thrum, Manager Investor Relations +61 459 828 720
Downer EDI Limited (www.downergroup.com) provides comprehensive engineering
and infrastructure management services to the public and private Minerals &
Metals, Oil & Gas, Power, Transport Infrastructure, Telecommunications, Water
and Property sectors across Australia, New Zealand and the Asia Pacific
region.
End CA:00230954 For:DOW Type:GENERAL Time:2012-12-11 10:03:34
(20min delay)